The Central Bank of Nigeria (CBN) has issued a directive to all banks and financial institutions, instructing them to gather additional customer information, including social media handles, residential addresses, and Bank Verification Numbers (BVN).
In its recent release of the ‘Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023’ document, the apex bank outlined the new requirements. The aim is to strengthen the identification process within the banking system.
The CBN’s directive falls under its customer due diligence regulations and is intended to enhance compliance with the Money Laundering (Prevention and Prohibition) Act (MLPPA) of 2022, Terrorism (Prevention and Prohibition) Act (TPPA) of 2022, Central Bank of Nigeria (Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions) Regulations of 2022 (CBN AML, CFT, and CPF Regulations), as well as international best practices.
Financial institutions are now required to identify their customers, whether permanent or occasional, and gather various pieces of information. For individuals, this includes legal name and any other names used, permanent address, residential address, telephone number, email address, social media handle, date and place of birth, Bank Verification Number, Tax Identification Number, nationality, occupation, public position held, and name of employer.
Furthermore, the CBN emphasized that individuals must possess at least one valid form of identification such as a passport, national identification card, residence permit, social security records, or driver’s license.
To open an account, customers must provide details regarding the type of account, the nature of the banking relationship, their signature, and their politically exposed person status.
The CBN’s new regulation aims to bolster customer due diligence measures within the purview of financial institutions and ensure compliance with relevant laws and international standards.
